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"Three minds and two minds" car Huatai Automobile is typical of the opposite side of car companies

Source: Economic Daily-China Economic Net Guo Yue
2019-12-30 09:04:28
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Huatai Automobile ’s name is dead, first of all because it completely relies on foreign resources and does not think aggressively “sitting on the hills and mountains”: there is no core technology, resources are continuously drained, and marginalization becomes inevitable. More deeply, companies only use the car as a pedal to earn other wealth. The fake car industry has been involved in many industries such as coal, real estate, and banking, until the auto industry has been abandoned.

Xu Haidong believes: "No matter whether it is technology research and development or shape design, car manufacturers need to focus on building their core competitiveness, and need to concentrate on establishing a brand image ... Otherwise, they will definitely be eliminated in the face of market competition."

With less than two days left in 2019, the overall downward trend in the auto market has once again accompanied us through the entire year. In this regard, the industry generally believes that the "cold winter" will continue for 3-5 years, and a new round of industry reshuffle has begun ...

In this context, the Economic Daily-China Economic Network specifically selected some highly representative companies for case analysis. Among them, there are both independent brands and joint ventures ... without exception, in the face of the current "big waves of sand washing", these enterprises have experienced extremely serious development and even survival problems. We look forward to exploring the source of the problem, summing up the rules of experience, and helping the industry develop healthily in this way.

The first article in this series of original manuscripts is launched today to explore how Huatai Automobile failed to build a car with two minds, and summarize what laws it violates.

All three production bases have ceased production, had overdue debts, had their assets frozen, involved a number of major lawsuits, and had a negative rating outlook ... On December 9, a decision on administrative supervision measures issued by the China Securities Regulatory Commission's Beijing Regulatory Bureau will replace The trend was fully disclosed to the public. But the stark contrast is the steady value of Hua Xiu ’s helm, Zhang Xiugen, and his family, who continued to top the “Forbes 2019 China ’s Rich List” with US $ 2 billion in assets.

Why is a precarious enterprise, but the head of the company is still sitting on the "top of the wealth pyramid"? This may be related to his "Guangzhou Investment", coal mines, banks, real estate ... "apart from building cars", Zhang Xiugen has been involved in many heavy asset industries. However, as an automotive industry that requires intensive research and collaboration across the entire industry chain, it is not allowed to be half-hearted or once and for all. Focusing on the research and development of core technologies, control of the market, and brand building can only stand out from the crowd. Eating in the air, or even using the automotive industry as a pedal to earn other wealth, is bound to be eliminated by the market.

“Everything once and forever” attempts to lead to marginalization

In 2000, Zhang Xiugen established Rongcheng Huatai Automobile Co., Ltd., and continued to cooperate with South Korea's Hyundai by virtue of its inexhaustible relationship with FAW Group, and successively introduced two SUVs, Traka and Santa Fe.

In 2003, Huatai Traka sold 15,000 vehicles in the first year of its listing, becoming the "fastest growing market model"; and Huatai Santa Fe, which was introduced in 2005 and made in China in 2006, made Huatai Automobile gradually reach its peak ...

"From 2001 to 2010, China's auto market entered a period of rapid development, and market demand at all levels gradually increased. Various market levels and various manufacturing companies have their own advantages and are at peace. After 2010, the market structure began with quantitative growth. Turning to quality-oriented growth, demand tends to be balanced, and the growth rate of production and sales begins to decline. The regulating function of the market economy has begun to appear, and the competition mechanism has begun to manifest itself. "Experts from the Expert Academic Committee of China International Engineering Consulting Corporation and the Department of Industrial Policy Former deputy inspector Li Wanli said in an interview with the Economic Daily-China Economic Network reporter.

Huatai Automobile introduces Hyundai Santa Fe

The prosperity of Huatai Automobile undoubtedly relies on the rapid development of the domestic automobile market and the endorsement of South Korean Hyundai brands and SUV models. However, since then, Huatai Automobile, which does not think aggressively, does not have core technology itself, and Hyundai Resources of Korea has gradually tilted to the mainstream joint venture, Beijing Hyundai, and Huatai Automobile has naturally been continuously marginalized.

Huatai Automobile's 4S shop in Beijing has long since been abandoned Photo by Guo Yue

Today, this company is about to celebrate its 20th anniversary, and Zeng Haoyan said he will sell 500,000 cars in 2020. Even if the factor of “counterfeiting” is removed, the sales volume in 2017 can still reach 129,800, but since then The cliff is falling, and it is difficult to find its sales data in 2019. Recently, a reporter from the Economic Daily-China Economic Network also found that the two 4S stores in Huatai Automobile in Beijing have already been reopened ... Huatai Automobile may have died in name.

"Three minds" car will eventually be eliminated

With the rapid development of the automotive industry, Huatai Automobile has always been engaged in "diversified management", and all "tall" industries such as coal mines, banks, and real estate are involved.

In 2005, Huatai Automobile settled in Ordos, Inner Mongolia, and plans to build an automobile production base with an annual output of 500,000 complete vehicles, 1 million clean passenger car diesel engines and related auto parts. If you vote for it, the local government will assign the exploration rights of the two coal mines, Panpanliang and Tangjiahui, to Huatai Automobile. Public information shows that in 2008, by transferring all the shares of the roller beam and selling 70% of the Tangjiahui Coal Mine, Huatai has brought at least 4 billion yuan in cash, and almost none of its commitments to the local government have been fulfilled. .

Huatai Auto participates in the increase of Bank of Beijing

At the same time, Huatai Automobile will also extend its "tentacles" to the banking industry. In 2011, Huatai Automobile won a 30% share of the Bank of Beijing's 11.8 billion yuan increase. In addition, Huatai Automobile has also invested in Inner Mongolia Bank, Weihai Commercial Bank, and Jinzhou Bank ...

In the industry's opinion, the main cause of Huatai's decline also lies in its "drunk man's intention is not 'car'". The "unnecessary business" of car manufacturing, even as a "financing platform", has largely doomed Huatai Automobile's current defeat and made it a "negative example" in the development process of China's auto industry.

In comparison, some auto companies that "focus on" the automobile industry have grown and become the cornerstone of the industry. Among them, Great Wall Motor can be said to be the most representative car company among independent brands. Adhering to the "focus" strategy, Great Wall Motors, which also entered the SUV field in 2003, continued to deeply cultivate this market, focusing on technology and research and development, and successfully established the Haval brand as a leader in the SUV market. Based on this, Great Wall Motors also launched luxury SUVs The brand-WEY, pushes the brand up. As of the end of 2018, Haval's global cumulative sales of SUVs exceeded 5 million units, and ranked No. 1 in China's SUV sales for the 9th consecutive year; the WEY brand also exceeded 300,000 units in three years of establishment.

"We don't have any special ability. We just persist, focus, and understand and make a car to make consumers satisfied," said Wei Jianjun, chairman of Great Wall Motors and founder of the WEY brand.

In an interview with the Economic Daily-China Economic Network reporter, Xu Haidong, assistant secretary-general of the China Association of Automobile Manufacturers, said: "No matter whether it is technology research and development or shape design, car manufacturers need to focus on building their core competitiveness, and they need to concentrate on establishing Brand image, this is the most basic element; if not, it will definitely be eliminated first in the face of market competition. "(Economic Daily-China Economic Net reporter Guo Yue)

责任编辑:吴海燕 Keywords: Huatai Automotive Editor: Wu Haiyan